The sun is setting on your lease accounting software. The software you rely on might be reaching its end-of-life, with no further updates or security patches. Or perhaps the vendor is phasing it out entirely, leaving you without critical support. Now you are on the hook for finding a new solution. You might also be facing the daunting task of migrating years of lease data to a new system, learning new software, and potentially re-engineering some of your processes.
While inconvenient, this software sunset can also be an opportunity. It forces you to step back, reassess your needs, and explore the latest advancements in lease accounting technology. This can lead to discovering more efficient and user-friendly solutions that better align with your current and future requirements. Think of it as a chance to upgrade your lease accounting toolkit and set your team up for greater success.
What to do when you need to transition to new lease accounting software
Facing a software sunset can be stressful, but with a proactive approach, you can ensure a smooth transition. Here’s how:
Step 1: Give yourself enough time.
Don’t wait until the last minute! Start planning your transition well in advance to avoid disruptions and compliance issues.
Step 2: Contact your current vendor and get the specifics.
To clarify what a software sunset means for you, ask your vendor these key questions:
- What does “sunset” mean in this case? Will the software stop functioning entirely, or will they simply cease updates and support?
- Will there be any transition period or grace period? Can you still access the software or receive limited support for a certain time after the sunset date?
- What is the exact sunset date?
- What assistance do they offer for migrating data to a new solution?
- Do they have any recommended alternative solutions?
- Will security updates be provided until the sunset date?
- How does the sunset affect your existing contract?
- Will there be any refunds or credits for unused license fees?
Step 3: Assess your software needs.
Before beginning your search, take a step back and assess your current lease accounting processes. Identify your must-have features and functionalities, but don’t stop there. Look ahead and consider your future needs to ensure the vendor you choose can adapt and grow with your business. This includes anticipating potential changes in your industry, within your organization (like mergers or acquisitions), and your team. Key factors to consider include:
- Lease volume and complexity: How many leases do you manage? What types of leases (real estate, equipment, etc.)?
- Accounting standards: Which standards do you need to comply with (ASC 842, IFRS 16, GASB 87)?
- Reporting requirements: What kind of reports do you need to generate?
- Integration needs: Does the software need to integrate with your ERP or other systems?
- Budget: What’s your budget for new software?
- User needs: What are the pain points of your current software? What features are most important to your team?
By clearly defining your needs, you can narrow down your options and choose a solution that’s the right fit for your organization.
Step 4: Research and evaluate alternatives.
Once you know what you need, start researching potential replacements. Look for software that:
- Meets your specific requirements: Ensure the software can handle your lease volume, complexity, reporting, and compliance needs.
- Offers a user-friendly interface: Choose a solution that’s intuitive and easy to learn, minimizing disruption for you.
- Provides strong customer support: Look for a vendor with responsive support and accounting expertise to assist you during implementation and beyond.
- Offers robust security features: Protect your sensitive lease data with a secure platform.
- Fits your budget: Evaluate pricing and ensure the software aligns with your financial resources.
See what your peers are saying: Leverage the experiences of others by exploring reviews and talking to colleagues who have used lease accounting software. Their insights can help you narrow your search and choose the best solution for your needs.
Shortlist potential solutions, compare them based on your key criteria, and explore reviews, demos, and events to narrow your search. Finally, request pricing to complete your evaluation.
Step 5: Plan your data migration.
Data migration is crucial for a smooth transition. Work with your new vendor to develop a comprehensive data migration plan. This includes:
- Data extraction: Extract your lease data from your current system in a compatible format.
- Data cleansing: Cleanse and validate your data to ensure accuracy and consistency.
- Data mapping: Map your data fields to the corresponding fields in the new software.
- Data import: Import your data into the new system and verify its accuracy.
Proper data migration ensures a seamless transition and minimizes disruption to your lease accounting processes.
Step 6: Define implementation and training goals.
Choosing your new software is a big step, but successful implementation and training are just as crucial. During your evaluation process, consider how each vendor can support a smooth transition, including their implementation methodology and training resources. Understanding the learning curve and how their processes can ease the switch will be key to a successful adoption. With the help of your new vendor, create a plan that includes:
- A project timeline: Establish a realistic timeline for implementation, considering any potential downtime or disruptions.
- Team involvement: Involve key stakeholders from your accounting, IT, and legal teams in the implementation process.
- Training resources: Ensure your team receives adequate training on the new software to maximize its effectiveness.
Testing and validation: Thoroughly test the new system before going live to ensure it meets your requirements and data integrity is maintained.
Step 7: Ensure ongoing support and optimization.
After implementation, leverage ongoing support from your vendor to address any questions or challenges. Continuously evaluate the software’s performance and identify opportunities for optimization. Stay informed about software updates and new features to maximize the value of your investment.
Conclusion
While a software sunset might seem disruptive, embrace it as an opportunity to upgrade to a better, more modern solution. Seek out software that offers cloud-based accessibility and scalability, allowing you to work from anywhere and adapt to future growth. Prioritize solutions with automation capabilities to save time and reduce errors, and look for those that provide advanced reporting and analytics for valuable business insights. Most importantly, choose a vendor with a strong product roadmap and a commitment to ongoing innovation, ensuring your new software remains relevant and adaptable for years to come.
